The paper investigates individual choice with the account of context effects which bias the choice. The presence of an inferior option in a choosing menu increases the attractiveness of the better options of the menu and thus disturbs the normative ranking. A concern for the menu flexibility, which increases the inclination of a decision maker, is also under consideration. The preferences are considered as reference-dependent ones over menus of lotteries in spaces of outcomes which can be finite as well as infinite. The preferences are represented via a state-dependent expected utility function. The main theorem of the paper gives conditions that provide such representability.